Mumbai Realty Prices Are Unbelievably Low: Trump

MUMBAI: American real estate tycoon Donald Trump plans to invest in the upcoming uber-luxury residential project in Mumbai to which he has lent his name. While the quantum of equity stake is still being negotiated, the move will mark the 68-year-old billionaire’s first investment in India.

After two non-starter projects in Mumbai and Bangalore, Trump’s bet on India’s realty sector has finally materialized with the business magnate tying up with Lodha Developers for a complex in Worli. “India is a great place to invest, especially after the elections, and this project (Trump Tower) speaks well about the prospects for the country,” said Trump, adding that several Indians reside in his towers globally. Indian rules allow a foreigner to invest $5 million in a joint venture with a three-year lock-in period.

Trump earns billions of dollars by licensing his name to various residential and hospitality projects across the world. Besides Lodha’s Trump Tower in Worli, the chairman and president of The Trump Organization has licensed his name to a 22-storey residential complex in Pune, which is being developed by Panchshil Realty.

Trump said that he has been looking at India for many years but it is only now that he found the right partner and the right opportunity. According to him, the partnership with Lodha is like “seeing a beautiful person and falling in love”. “Getting into partnership is like getting into marriage — chemistry is very important,” said Trump.

The 75-plus-storey Trump Tower, which entails an investment of Rs 2,300 crore, comprises 3-, 4- and 6-BHK apartments, priced between Rs 9 crore and Rs 18 crore. Already 100 units out of the 300 have been sold, claimed Abhishek Lodha, MD of the Rs 8,700-crore Lodha Developers. Non-resident Indians from Hong Kong and the Middle East form a good chunk of the buyers. Lodha expects to earn revenues of up to Rs 5,000 crore from the Worli project.